Although the stock market is down again today, one of my favorite China stocks, Netease.com (NTES), reached another new all-time high yesterday.
Seven years ago, the stock was going for about 20 cents a share (adjust for splits). Today Netease.com is over $28 a share so that’s a gain of 140-fold in seven years. The stock is up 37% since the market turned on March 9.
In recent years Netease.com has shifted its focus to online game development with popular titles such as Westward Journey Online III and Fantasy Westward Journey. The company generates revenues from fees charged to users of online games and wireless value-added premium services (stock quotes, downloadable ring tones for mobile phones, premium e-mail services, and online personals), as well as from selling online ad space.
Netease.com is a very strong buy.